Streaming with either Playback or connect360 is fine as long as you're ok with the interface on the 360, which I am not a particular fan of. I have Connect360, and I try not to use it since I don't really like the interface, and the amount of menus to go through to get to what you want. Sorting of movies is quite messy, folders sometimes don't show up properly.
That is one of the reasons I bought the apple tv, since it has a much more simple, intuitive, and more Mac-like interface, and the fact that it has AirPlay, which is my main reason.